Seanda

Hi All,
Can anybody offer advise or information on how salary packaging works in oz. Moving in september with wife (main applicant) and three children under 457 visa.
What kind of things can you offset...

Also what is novated car lease? obviously we will hire a car for the first couple of months (which will be expensive). If we go down this route and package the cost does it make it easier to get a car lease. I would imagine without a credit history in australia or physical cash it would be difficult to get a car..and long term car hire isnt really an option.

Any suggestions and advice would be appreciated.
Thanks

ozzieeagle

Is your wife in the medical profession ? If she is and works for a public hospital then it's worth 10- 15 pct or thereabouts extra on your take home pay. You can offset your Mortgage/Rent/Meals and Entertainment/ and Holidays. IE: that portion that you would pay on those items is taken into a special account pre tax and paid directly by you to those items. My wife is around 180-230 dollars a fortnight better off because of it.

I dont know of any nurse that taken advantage of the car leasing. Reason being you have to do to many Kilometers to make it viable.

Seanda

thanks for that - appreciate it. we would no doubt use up quite a lot of KM as we are inclined to travel alot when not working....

Seanda

yes, she is a nurse and is taking up a post at the mater hospital brisbane.

ozzieeagle

It will probably become a choice of what your would rather spend/save your money on... there is only so much of your income that you can save 31pct on... I doubt if she will hit the 39 tax pct bracket (perhaps on a little bit of overtime if she does a lot. has to get to 80,000 K and above for the 39 pct plus)... so that gives you a window of around 30 to 40K against which you can offset. The Car rules are very strict. Whereas the other rules are very loose. You just nominate an amount for the meals and entertainment... say 200 to 300 dollars a fortnight... and then your Mortgage... say payments on 300,000 K...... which doesn't leave much money for the car. It's amazing how much you can save just by going to a pub buying one plate of food and having a tab running for night against the Alcohol. Thats why the Meals and Entertainment generally wins the tax offset against the Car.

Like I said the car rules are very strict. I'd make my choice when I got here If I were you and talk to the other Nurses.

Heres the tax rates... you'll note that there really is only 45,000 K (35k to 80K at 30pct) or around 15K of take home income thats worth making use off..

http://www.ato.gov.au/individuals/co...tent/12333.htm

Comes down to how many take away meals and how much you may go out in a fortnight The Mortgage/rent is a given.

medwaymark

I think the Mater is a private hospital. If she worked for a public hospital you can sacrifice a lot more.....I sacrifice about $350 a fortnight (ie tax free) for mortgage & electricity.

If she contacts the Mater, they will be able to send her literature or put her in touch with the company that manage the sacrificing arrangements for the Mater.

bingobob777

Note that the tax rules regarding Novated Leases chaned in the recent budget and the FBT is now a flat 20% for any mileage driven annually.

It now makes it much more attractive for those driving 25k and less a year.

My novated lease is saving me $3,600 a year in tax compared to what I would pay by buying on my own.

ozzieeagle

Hmmm the OP needs to read this. It's possibly going to be complex as I noted that the Mater is supposedly a non profit organisation. I've never heard of Private hospital employees getting the following. Maybe they do ? Need to talk to someone that's worked in both systems.

http://www.ourcommunity.com.au/board...articleId=2985

Edit.... Public hospitals are public benevolent institutions and get 100 pct exemption... Private get 48 pct exemption. AFAIK...

medwaymark

I should think that contacting payroll at Mater and asking for the documentation would be a useful exercise.....

Kim67

The Mater is a public and private hospital. The main hospital (referred to as just The Mater) is public and also contains the private sections of the Women's and Children's. The Mater Private is a smaller private hospital across the road and is usually referred to as Mater Private.

Margaret3

how on earth do you understand this all i know is its a good thing to do it and i seem to have lots of money to eat out

Must admit i worry about tax time this year, as its the first year i've done the meals entertainment and sacraficed more into my super, i feel am gonna regret it at tax

ozzieeagle

You wont... It's Centerlink child welfare payments where it gets confusing. only 50pct of the benefit is classed as income by Centerlink. I've no idea why. You need an accountant that understands Centerlink payments for your tax. Thats a must especially with salary packaging. Talk to your fellow Nurses Marg. Will compare notes on July13th v Celtic maybe.

Do not go to HR Block or there ilk.